CONTROL BIONICS LIMITED — Annual Report 2025

Aug 28, 2025

Control Bionics Limited Appendix 4E Preliminary Final Report

1	Company information
	Name of Entity		Control	Bionics Limited
	ABN		45 115	465 462
	Reporting Period		For the	year ended 30 June	2025
	Previous Corresponding Reporting Period		For the	year ended 30 June	2024
2	Results for announcement to the market
					$
	Revenues from ordinary activities	Up	14.84%	to	6,144,907
	Loss from ordinary activities after tax attributable	Up	3.30%	to	(6,108,667)
	to the owners of Control Bionics Limited
	Loss for the year attributable to the owners of	Up	3.30%	to	(6,108,667)
	Control Bionics Limited

Dividends

There were no dividends paid, recommended or declared for the current financial year.

Comments

The loss for the Group after providing for income tax amounted to $6,108,667 (30 June 2024: $5,913,779).

3 Net tangible assets Net tangible assets per ordinary security	30 June 2025 Cents 30 June 2024 Cents 0.49 0.93
4 Control gained over entities Not applicable
5 Loss of control over entities Not applicable 6 Details of associates and joint venture entities

Name of associate / joint venture	Principal activities	Ownership interest at reporting date (%)	Ownership interest at previous reporting date (%)	Contribution to net profit (loss) after tax	Other comprehensive income
NeuroElite Athletics, LLC	Sports Performance	20%	-%	$(58,076)	$–

Control Bionics Limited Appendix 4E Preliminary Final Report

7 Audit

This report should be read in conjunction with the unaudited preliminary financial statements attached. The financial statements in the preliminary financial statements are in the process of being audited. Consistent with the prior year, the audited financial statements are likely to include an emphasis of matter related to a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern.

8 Attachments

Details of attachment (if any):

Unaudited preliminary financial statements for year ended 30 June 2025 are attached.

9 Signed

==> picture [160 x 47] intentionally omitted <==

Samuel F. Straface, Chairman

As authorised by the Board of Directors

Date: 29 August 2025

Control Bionics Limited Condensed consolidated statement of profit or loss and other comprehensive income (unaudited) For the year ended 30 June 2025

Revenue Note Other income Expenses Raw materials and consumables used Employee benefits expense Research & development costs (non-staff) Depreciation and amortisation expense Corporate travel Professional fees Marketing and promotion Legal fees, patents and insurance General and administrative expense Bad debt expense Foreign exchange (loss)/gain Impairment loss arising from other assets Finance costs Share of net losses of investments accounted for using the equity method 4 Loss before income tax expense Income tax expense Loss after income tax expense for the year attributable to the owners of Control Bionics Limited Other comprehensive income/(loss) Items that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations Other comprehensive income/(loss) for the year, net of tax Total comprehensive loss for the year attributable to the owners of Control Bionics Limited Basic loss per share 13 Diluted loss per share 13	2025 $ 6,144,907 895,295 (2,031,466) (6,061,413) (1,067,359) (986,458) (629,065) (413,560) (413,797) (288,114) (836,856) (232,886) (10,769) (10,077) (108,973) (58,076)		2024 $ 5,350,774 1,004,594 (1,454,121) (5,449,029) (1,714,851) (843,191) (586,837) (724,598) (460,674) (258,572) (217,268) (414,089) 4,172 (93,806) (56,283) -
	(6,108,667) - (6,108,667) 3,459		(5,913,779) -
			(5,913,779) (20,983)
	3,459		(20,983)
	(6,105,208)		(5,934,762)
	Cents (2.31) (2.31)		Cents (3.71) (3.71)

The above condensed consolidated statement of profit or loss and other comprehensive income (unaudited) should be read in conjunction with the accompanying notes

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Control Bionics Limited Condensed consolidated statement of financial position (unaudited) As at 30 June 2025

Note Assets Current assets Cash and cash equivalents 2 Trade and other receivables 3 Inventories Other assets Total current assets Non-current assets Investments accounted for using the equity method 4 Property, plant and equipment 5 Intangibles 6 Right-of-use assets 7 Total non-current assets Total assets Liabilities Current liabilities Trade and other payables 8 Borrowings 9 Lease liabilities 7 Employee benefits Total current liabilities Non-current liabilities Lease liabilities 7 Employee benefits Total non-current liabilities Total liabilities Net assets Equity Issued capital 10 Reserves 11 Accumulated losses 12 Total equity	2025 $ 2024 $ 594,733 980,760 1,968,397 2,186,704 409,644 404,150 200,009 190,164
	3,172,783 3,761,778
	341,000 - 644,531 851,698 3,875,219 4,047,007 199,423 366,827
	5,060,173 5,265,532
	8,232,956 9,027,310
	2,013,718 1,567,488 94,941 517,136 206,857 108,437 237,886 210,046
	2,553,402 2,403,107
	133,600 336,165 37,229 20,330
	170,829 356,495
	2,724,231 2,759,602
	5,508,725 6,267,708
	40,365,766 35,152,513 530,782 394,351 (35,387,823) (29,279,156)
	5,508,725 6,267,708

The above condensed consolidated statement of financial position (unaudited) should be read in conjunction with the accompanying notes

2

Control Bionics Limited Condensed consolidated statement of changes in equity (unaudited) For the year ended 30 June 2025

For the year ended 30 June 2025
Balance at 1 July 2023 Loss after income tax expense for the year Other comprehensive loss for the year, net of tax Total comprehensive loss for the year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs Share-based payments Options issued in lieu of payment Balance at 30 June 2024 Balance at 1 July 2024 Loss after income tax expense for the year Other comprehensive income for the year, net of tax Total comprehensive income/(loss) for the year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (Note 10) Share-based payments Options issued in lieu of payment Balance at 30 June 2025	Issued capital $ 30,241,659 - -	Reserves $ 271,371 - (20,983)	Accumulated losses $ (23,365,377) (5,913,779) -	Total equity $ 7,147,653 (5,913,779) (20,983) (5,934,762) 4,910,854 136,963 7,000
	- 4,910,854 - -	(20,983) - 136,963 7,000	(5,913,779) - - -
	35,152,513	394,351	(29,279,156)	6,267,708
	Issued capital $ 35,152,513 - -	Reserves $ 394,351 - 3,459	Accumulated losses $ (29,279,156) (6,108,667) -	Total equity $ 6,267,708 (6,108,667) 3,459
	- 5,213,253 - -	3,459 - 123,872 9,100	(6,108,667) - - -	(6,105,208) 5,213,253 123,872 9,100
	40,365,766	530,782	(35,387,823)	5,508,725

The above condensed consolidated statement of changes in equity (unaudited) should be read in conjunction with the accompanying notes

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Control Bionics Limited Condensed consolidated statement of cash flows (unaudited) For the year ended 30 June 2025

Control Bionics Limited Condensed consolidated statement of cash flows (unaudited) For the year ended 30 June 2025
Note Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Receipts from government grants Interest received Interest and other finance costs paid Net cash used in operating activities Cash flows from investing activities Payments for property, plant and equipment Payments for intangible assets Payments for investments accounted for using the equity method 4 Proceeds from sale of shares Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares 10 Proceeds from borrowings Share issue transaction costs 10 Repayment of borrowings Repayment of lease liabilities Net guarantee paid on new lease arrangements Net cash from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the financial year 2	2025 $ 5,938,272 (11,048,215) 852,106 36,672 (48,155)	2024 $ 5,321,759 (10,975,225) 785,668 12,183 (56,283)
	(4,269,320)	(4,911,898)
	(302,327) (139,660) (338,132) 35,337 (744,782)	(398,337) (74,750) - - (473,087)
	5,406,223 232,737 (192,970) (654,932) (164,963) - 4,626,095 (388,007) 980,760 1,980	5,094,273 648,449 (114,476) (131,313) (47,496) (21,738)
		5,427,699 42,714 935,503 2,543
	594,733	980,760

The above condensed consolidated statement of cash flows (unaudited) should be read in conjunction with the accompanying notes

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Control Bionics Limited Notes to the condensed consolidated financial statements (unaudited) 30 June 2025

Note 1. Operating Segments

Identification of reportable operating segments

Segment information is based on the information that management uses to make decisions about operating matters and allows users to review operations through the eyes of management. Operating segments represent the information reported to the chief operating decision makers (CODM), being the executive management team, for the purposes of resource allocation and assessment of segment performance.

The Group has identified operating segments applicable to the sale of assistive communications technology systems within the disability sector. The reported loss for the combined segments within the sector before income tax is $6,108,667 for the year (2024 loss: $5,913,779).

The segment currently has two functioning operations in two geographical locations: Australia and North America, market exploration in alternate geographical locations including Japan, a corporate function in addition to a substantial Research and Development program. This is consistent with the internal reporting provided to the CODM and is aligned to the one major revenue stream.

The CODM reviews EBITDA (earnings before interest, tax, depreciation, and amortisation). The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in these financial statements.

The information reported to the CODM is on a monthly basis.

Types of products and services

The principal products and/or services of each of the geographical locations within the operating segment are as follows:

Australia (Aust) Sales of systems related units and components in Australia

North America (US) Manufacture and sales of systems units and components in North America

Japan and other Activities undertaken to establish viable and additional operating markets, but not yet determined to markets be a material market segment in their own right.

R&D (R&D) Research activities undertaken in regards to the Group's products.

Corporate The provision of support, regulatory and infrastructure activities, and elimination entries above the EBITDA line.

2025 Revenue and income Expenses EBITDA Interest Depreciation Impairment of assets Share of associates losses Loss before income tax for the period Income tax expense Loss after income tax expense for the period*	Aust $ 1,256,330 (1,845,485)	US $ 5,684,688 (7,523,477)	Japan and other markets $ 125,185 (262,100)	R&D $ 724,633 (2,026,943)	Corporate $ (750,634) (327,280)	Total $ 7,040,202 (11,985,285)
	(589,155)	(1,838,789)	(136,915)	(1,302,310)	(1,077,914)	(4,945,083)
						(108,973) (986,458) (10,077) (58,076)
						(6,108,667)
						- (6,108,667)

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Control Bionics Limited Notes to the condensed consolidated financial statements (unaudited) 30 June 2025

Note 1. Operating Segments (continued)

2024 Revenue and income Expenses EBITDA Interest Depreciation Impairment of assets Loss before income tax for the period Income tax expense Loss after income tax expense for the period*	Aust $ 1,086,448 (1,313,449)	US $ 4,962,722 (7,177,583)	Japan and other markets $ 59,950 (226,670)	R&D $ 952,134 (2,501,129)	Corporate $ (705,886) (57,036)	Total $ 6,355,368 (11,275,867)
	(227,001)	(2,214,861)	(166,720)	(1,548,995)	(762,922)	(4,920,499)
						(56,283) (843,191) (93,806)
						(5,913,779)
						- (5,913,779)

*Interest, Depreciation, Amortisation and Impairment are excluded from expenses in the above schedule due to joint use between segments of certain assets and expense components.

Segment assets and liabilities

The internal management reporting presented to key business decision makers report total assets and liabilities on the basis consistent with that of the consolidated financial statements. These reports do not allocate assets and liabilities based on the operations of each segment or by geographical location.

Under the current management reporting framework, total assets are not reviewed to a specific reporting segment or geographical location.

Note 2. Cash and cash equivalents

Cash at bank Note 3. Trade and other receivables Trade receivables Trade receivables - subject to variable consideration Net carrying value of trade receivables Government grants receivable (R&D tax incentive) Office deposit bond GST refundable Total trade and other receivables	2025 $ 594,733	2024 $ 980,760
	2025 $ 174,629 1,224,337	2024 $ 112,620 1,164,414
	1,398,966	1,277,034
	474,160 77,924 17,347	784,322 77,924 47,424
	1,968,397	2,186,704

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Control Bionics Limited Notes to the condensed consolidated financial statements (unaudited) 30 June 2025

Note 4. Investments accounted for using the equity method

Investments in associates	2025 $ 341,000	2024 $ -

On 16 December 2024, Control Bionics Limited, through its wholly owned subsidiary Control Bionic Ngage Inc., acquired a 20% stake in Neuro Elite Athletics, LLC, the US-based company behind the NeuroBounce program, for approximately US$260,000 including cash and in-kind contributions. Per the agreement, payments and contributions were to be made in tranches as follows:

• the first tranche payment of US$100,000 was made on 14 December 2024.

• the second and final tranche payment of US$111,100 to be made within 6 months of 14 December 2024, upon Neuro Elite Athletics, LLC providing Control Bionics 20 business days' notice to pay.

• Control Bionics to provide Neuro Elite Athletics, LLC certain equipment and resources with a deemed value of US$50,000 on an as needed basis.

As of 30 June 2025, all cash payments have been made and approximately US$10,000 of the equipment and resources have been provided.

Note 5. Property, plant and equipment

Trial and demonstration equipment - at cost Less: Accumulated depreciation Leasehold improvements - at cost Less: Accumulated depreciation Plant and equipment - at cost Less: Accumulated depreciation Assets under construction	2025 $ 1,587,870 (1,006,276)	2024 $ 1,681,054 (906,885)
	581,594 42,241 (27,128)	774,169
		41,769 (18,285)
	15,113 210,168 (163,961)	23,484
		189,822 (135,777)
	46,207 1,617 644,531	54,045
		-
		851,698

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Control Bionics Limited Notes to the condensed consolidated financial statements (unaudited) 30 June 2025

Note 6. Intangibles

Note 6. Intangibles
Intellectual property - at cost Less: Accumulated amortisation Patents and trademarks - at cost Less: Accumulated amortisation Software - at cost Less: Accumulated amortisation Note 7. Leases Right-of-use assets Land and buildings - right-of-use Less: Accumulated depreciation	2025 $ 4,064,353 (393,318)	2024 $ 4,064,353 (131,106)
	3,671,035 244,224 (70,606)	3,933,247
		104,564 (31,489)
	173,618 50,594 (20,028)	73,075
		50,594 (9,909)
	30,566 3,875,219	40,685
		4,047,007
	2025 $ 551,068 (351,645)	2024 $ 548,966 (182,139)
	199,423	366,827

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:

Balance at the beginning of the financial year Additions Depreciation expense Exchange differences Balance at the end of the financial year Lease Liabilities Current Lease Liabilities Non Current Lease Liabilities Total carrying amount of lease liabilities Maturity analysis of committed lease payments	2025 $ 366,827 - (168,511) 1,107 199,423	2024 $ 123,359 363,008 (119,630) 90 366,827
	2025 $ 206,857 133,600 340,457	2024 $ 108,437 336,165 444,602

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Control Bionics Limited Notes to the condensed consolidated financial statements (unaudited) 30 June 2025

Note 7. Leases (continued)

Less than one year One to five years Total committed cash payments Note 8. Trade and other payables Trade payables Other current liabilities Deferred revenue Payroll and bonus accruals Other taxes payable Note 9. Borrowings Insurance funding arrangement Research & Development loan Total secured liabilities The total secured liabilities are as follows: Research and Development loan	2025 $ 241,797 138,799	2024 $ 165,024 380,500
	380,596	545,524
	2025 $ 877,776 510,603 274,104 251,435 99,800	2024 $ 609,667 411,891 315,523 166,724 63,683
	2,013,718	1,567,488
	2025 $ 94,941 -	2024 $ 87,542 429,594
	94,941	517,136
	2025 $ -	2024 $ 429,594

Research and Development loan

Terms of borrowings

On 17 February 2025, Control Bionics Limited reactivated an insurance funding arrangement with Attvest Finance ("Attvest") whereby Attvest provide funding to renew policies. The outstanding balance of this funding facility is $94,941 at year end. Interest is payable at a rate of 4.3% and the funding facility is due for repayment on or before 31 December 2025.

The research and development loan, held with Radium Capital, was repaid in full during September 2024.

Note 10. Issued capital

Ordinary shares - fully paid	2025 2024 2025 2024 Shares Shares $ $ 294,611,102 199,286,776 40,365,766 35,152,513

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Control Bionics Limited Notes to the condensed consolidated financial statements (unaudited) 30 June 2025

Note 10. Issued capital (continued)

Movements in ordinary share capital

Details Date Balance at the beginning of the period Private Placement 15/08/2024 Rights issue 11/10/2024 Rights issue 16/10/2024 Rights issue 16/10/2024 Shortfall shares 20/12/2024 Private placement 25/02/2025 Less: Transaction costs Balance at the end of the period		Shares Issue price 199,286,776 10,000,000 $0.0525 9,938,489 $0.0700 16,428,722 $0.0700 11,904,369 $0.0700 4,428,571 $0.0700 42,624,175 $0.0450 294,611,102		$ 35,152,513 525,000 695,694 1,150,011 760,856 310,000 1,964,662 (192,970)
				40,365,766

The Group also issued 21,350,125 options to non-renounceable rights holders with an exercise price of $0.10.

Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital.

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

Capital risk management

The Group's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital.

Capital is regarded as total equity, as recognised in the statement of financial position (unaudited), plus net debt. Net debt is calculated as total borrowings less cash and cash equivalents.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Group would look to raise funds for working capital or when an opportunity to invest in a business or company was seen as value adding relative to the current company's share price at the time of investment.

Note 11. Reserves

Note 11. Reserves
Foreign currency translation reserve Share option reserve		2025 $ 72,449 458,333	2024 $ 68,990 325,361
		530,782 394,351

Foreign currency translation reserve

The foreign currency translation reserve records exchange differences arising from translating non-monetary assets and liabilities at the current rate at the end of the financial period rather than at historical rates.

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Control Bionics Limited Notes to the condensed consolidated financial statements (unaudited) 30 June 2025

Note 11. Reserves (continued)

Share options reserve

The option reserve relates to share options granted by the Group to its employees under the arrangements outlined in Note .

Movements in reserves

Movements in each class of reserve during the current financial year are set out below:

Foreign currency translation reserve $ Balance at 1 July 2023 89,973 Exchange differences on translation of foreign operations (20,983) Share based payments - Options issued in lieu of payment - Balance at 30 June 2024 68,990 Exchange differences on translation of foreign operations 3,459 Share based payments - Options issued in lieu of payment - Balance at 30 June 2025 72,449 Note 12. Accumulated losses Accumulated losses at the beginning of the financial year Loss after income tax expense for the year Accumulated losses at the end of the financial year Note 13. Earnings per share Loss after income tax attributable to the owners of Control Bionics Limited Weighted average number of ordinary shares used in calculating basic earnings per share Weighted average number of ordinary shares used in calculating diluted earnings per share Basic loss per share Diluted loss per share	Foreign currency translation reserve $ 89,973 (20,983) - -	Share option reserve $ 181,398 - 136,963 7,000	Total $ 271,371 (20,983) 136,963 7,000
	68,990 3,459 - -	325,361 - 123,872 9,100	394,351 3,459 123,872 9,100
	72,449	458,333	530,782
		2025 $ (29,279,156) (6,108,667)	2024 $ (23,365,377) (5,913,779)
		(35,387,823)	(29,279,156)
		2025 $ (6,108,667)	2024 $ (5,913,779)
		Number 264,083,917	Number 159,393,290
		264,083,917	159,393,290
		Cents (2.31) (2.31)	Cents (3.71) (3.71)

The number of ordinary shares used in the calculation of diluted loss per share is the same as the number used in the calculation of basic loss per share in the year ended 30 June 2025 and the prior year ended 30 June 2024 as potential ordinary shares are not considered dilutive as a loss was incurred in both years.

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Control Bionics Limited Notes to the condensed consolidated financial statements (unaudited) 30 June 2025

Note 14. Matters subsequent to the end of the financial year

On 22 July 2025, the Company entered into a loan facility agreement with Phoenix Development Fund Limited for $450,000. The loan is secured by the Company's R&D tax refund, is subject to 12% interest per annum, and is due and payable on the earlier of 6 months from the date of the agreement or the date on which the R&D refund is received.

On 28 August 2025, Control Bionics Limited announced a Non-Renounceable Rights Issue Offer (Offer) for 58,922,220 new shares at a price of $0.035 per share. If fully subscribed, the Offer will raise up to approximately $2.062 million (before costs). The Offer is underwritten to the extent of $1,157,725 and is available to eligible shareholders on the record date of 2 September 2025.

No other matter or circumstance has arisen since 30 June 2025 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years.

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